tv Inside Washington PBS July 18, 2010 2:00pm-2:30pm PST
>> production assistance was provided by albritton communications and politico, reporting on the legislative, executive, and political arena. tba captioned by the national captioning institute --www.ncicap.org-- >> unless you're a business model that bans on cutting quarters or building your customers, you have nothing to fear from this reform. >> this week, wall street reform passes. has the obama administration declared war on big business desk ? >> we moved this government away from government of the people to government by regulators. >> bp kept the oil spill. >> i understand house democrats are angry because they see the white house throwing them into the bus. >> also, why are house democrats feeling unloved by the white house? >> we have no problem with the tea party. we have a problem with them
tolerate racism in their ranks. >> the naacp takes on the tea party. >> we have always denounced racism and recall it out whether it is tea party crashers from the left are members who have attended our events. >> these are the toughest restrictions on banks since the great depression but some people say it does not go far enough. three republicans on board came 22 months after the lehman brothers collapse threatened to collapse the entire economy. democrats say it will bring more oversight and transparency. republicans said the federal government is extending its reach deep into the private sector and will drive financial sector jobs overseas. who is right? >> there republicans, of course. >> thank-you.
>> margaret. >> the democrats, of course. it was watered down to get enough boats but thank god for something. >> probably a little bit above. >> i knew that was coming. >> but, in the last analysis, we have had 30 years of deregulation and it is time for some re-regulation. >> what does this debate tell us about the two parties midterm strategies? >> it is predictable that to have three gop senators that voted for this and they are three moderates from new england. this is challenging because the memory of the average american voter is so darn sure. if this boat was taking place in the fall of 2008, it may have had more political residents. the notion of more regulation on wall street does not necessarily translate well. they want jobs, jobs, jobs. >> this is nothing, it is what
in the regulation. christopher dodd himself said in june that it will affect every aspect of american life. we will see what it's like after it passes. nobody knows. there are 243 regulations that will have to be written per that will bring in lobbyists and lawyers and this is where the big banks and bacon cetaceans are the losers the small businesses are the losers here. >> even before the senate cast final bout, the house republican leader john behner was calling for its appeal that i think it will make a credit for -- order for the american people to get an order for businesses to get. the fact that it will publish -- punished every banker in america for the sins of a few on wall street. >> what is at the heart of all this is the people in this country who depend upon, have confidence, or trust shattered
because they have lost so much. they have lost homes, jobs, retirement, and they have lost their confidence and trust in the financial system. >> with this legislation, the senate banking committee chairman christopher dodd says he wants to rebuild the trust in the american system. obama keeps doing big things but do the voters cared? >> it is a fair question. he has accomplished a remarkable amount. he said it would. he passed health care. the past major financial reform. he had a huge stimulus package. he is at least with and some distance, firing distance of a climate bill. he gets very little credit for that from anybody especially his left which is mad at him all the time. they are not seeing enough of what they want them of the salesmanship has been the problem. john dickerson had a piece this
week and the headline was," death of a salesman." he was an incredible communicator during the campaign and what happened to that candidate? we have not seen it in the past year and have. >> it was also written that obama is widely perceived as 40 with a failed presidency. >> in some accounts, he is not doing that badly. when time magazine asks those rather be president, overwhelmingly it was obama. 34% of the public thinks that the recession that we are in and a jobless recovery is george bush's fault curren. obama cannot sell this as long as there is 9.5% unemployment. >> charles, you save the troubled publicans -- you say the republicans underestimate this president. >> this is historic.
it is presidency ended today, he would be remembered as a very important president. i believe he is putting us on the road to national health care. that is an amazing achievement% the problem is, does not that he is not selling well, it is that people do not want to buy it. health care was not number 1. it was in 2008 or 2007 with 10% unemployment it was not high on list and people were unhappy with obama spending a year-and- a-half on this in the middle of the recession. it was not that he can't sell it, it's not stuff that people were looking for. >> it was not either/or that you can only do one thing at a time. what could have happened to stimulate the economy to get one more job with health care have not been done? >> health care is impeding and
the financial reform which are historic achievements are competing this recovery. they introduced a level of on certainty and business. >> uncertainty has returned to business. >> there has never been more uncertainty. you have no idea how much you will pay for this. it of no idea what the cost of money will be as a result of this. >> financial regulation -- [unintelligible] >> you don't know what regulations. [unintelligible] >> the truth is, there is not adopt demand that is why there is not a business recovery. it has nothing to do with anything but that. >> and one running for reelection -- he is a senator who will be on the ballot in massachusetts and will face his
former opponent. he is trying to carve out a niche par. he may be a tea party hero for what he did publicly but he has to run for reelection in a state that is very liberal bent of the absence of demand is because industry and banks have $1.80 trillion of cash on hand. they are not into investing. with this president in this economy, you don't want to invest. therefore, there is no money out there and no demand. >> one way to stimulate demand is to extend unemployment benefits. >> and they did not do it. the sec hit goldman sachs for half a million dollars in the bp oil spill is stopped for a while. >> goldman sachs has agreed to pay $500 million. the more than half a billion
dollars is a largest penalty assessed against a wall street firm or investment bank in the history of the securities and exchange commission. >> that gentleman is the enforcement director. goldman sachs reported a profit of $13.39 billion. company shares increased by 5% after news of the settlement. >> wow. hit me again. that is two days profit. once again, the banks went. is that uncertainty for you? >> that is why they settled parent this is so they would get this out of the way. what they can't get out of the way is that there remains a criminal investigation. i doubt there will be charged. it is still there. >> let me go to tom donahue's point, the guy from the chamber of commerce. how much of this begins to
stifle the recklessness you need to have a free enterprise system? >> there is an amount of and prevention. intervention. the president has sold this as we will not have any more meltdowns or bailouts. it gives the fed and the treasury unilateral power without any congressional approval to step and to take over a bank or large institution. only the very large ones, the largest institutions have an implicit guarantee. if you lend to a large institution, you will get the money back. >it is not true of the land too small institutions. >> the only way to do that is [unintelligible] >> when you are out there in 2010 and to retain receding congress or are running proceeding congress, how do you play this?
do you attack goldman sachs our president obama or all of the above? >> the key is how you vote parent blanche lincoln of arkansas has talked a tough game about taking on the big banks. she is still down terribly in the polls. it is wanted to beat up on business but the fact is that democrats and republicans made financial contributions from the business community. if they don't have it, that is very tough for them. >> the democrats are way down with business contributions. >> wall street has lashed out against the democratic party. when charles schumer was chairman of the campaign committee, he raked in millions from wall street. that is way down now because they are dismayed over their treatment. >> if you doubt this, you can by legislation. that is the way we built our
campaign system. >> bp has finally stopped the leak temporarily. >> what a beautiful picture. we have been looking at that gushing oil for 87 days. bp is causing it may lack -- may not last. >> how to the politics of this payout -- play out? does this get the president off the hook? >> yes, does that -- because that picture has been devastating. it happened on his watch. he did not reform the interior department quick enough and lord knows, we know the mineral services management agency was corrupt. >> if he had got this stopped a few weeks earlier, he would got much more credit politically but some americans have moved from the issue to elsewhere. it is happening too late, almost. >> i think it is very important.
the image of the spewing oil was a symbol of helplessness of government or helplessness of everybody. particularly a government that is extremely activist and can fix society and claims all kind of powers and they have a capacity to do good. it was like america held hostage at the end of the 1970's. you take away that image and it takes a huge load of this administration. it was subtle but i think it will help them a lot if the well is actually capt.. >> house democrats are not happy with the obama white house. >> there are enough seats in play that could cause republicans to gain control. there is no doubt about that. >> i think his statement was completely wrong. we will not lose the house of representatives. >> i hear nancy pelosi was furious about what robert gibbs
said on television. >> she was very angry. the house liaison for the obama administration got an earful. this comment was a great washington moment it was behind what was said. everybody knows the house will be in play. this tore off the bandage on it won't between the house democrats and this white house. house democrats have long felt that this administration is overly senate-focused. they have done three events for harry reid and not one for individual house members. this was the first spark that tore open this. you saw that in nancy pelosi's private caucus and i'm sure you saw it at the white house thursday. >> these people have cast some very tough votes.
they think that clinton cared more about himself and that is one of the reasons they lost the house in 1994. nancy pelosi has been an extraordinary speaker. she is probably would offend the best and most beloved speakers since sam rayburn. the fact that she blew a gasket is fine. >> do you think the president is more focused on the senate? >> yes, a key is spread -- yes, he is. obama does not seem to be as rattled by the prospect and he should be parent. obama has until 2012 which seems like an eternity and the house only as a few minutes left to get it right. >> it is not that it favors the senate over the house, he favors himself over both.
[laughter] he can live with a republican house in 2010. it might even help him win reelection this is the same way clinton used new gingrich and republican trove -- control, he used them with great success. obama has achieved all the big achievements he will have. he has done that with all of those issues. he will not do anything between now and inauguration day, whoever is elected in 2013. he is worried about his reelection. he is not concern about house democrats and they know it. >> will it be a republican house? >> it is very much possible. there is a path where you can see the gop getting the 39 seats. they have taken a tough votes and their attitude is not for the white house, it is toward the senate. the house voted on the energy
bill in 2009 over one year ago and it has never been taken up in the senate. house members were take -- facing tough elections this fall. quacks expectations for republicans were raised this week said that if they do not get 40 seats, it looks like they failed. >> they will get a wave of the question is if they get enough of one. no matter what happens, they will lose seats and if the democrats retain control, they will be facto have lost control i don't think any president realizes what it means in modern times to lose control of one of the branches of legislature. it means you are under constant investigation. >> that is the real balance.
obama can campaign against the gop to win election but the reality is you will have done issa hanging over your head. >> it will be a lot of fun, i must say there [laughter] >> we have that to look for it to. the nation's oldest and largest civil-rights organization lashes out of the tea party. >> the last hundred years of standing up for unity in this country has taught us that when you see a party who gets up there and says we are not the racist spris. there are people making racist comments and carrying signs, you have to stand up clicker. >> we have always aggressively denounced racism and called out whether it is tea party crashers from the left or members who have attended our event. >> take a look at this billboard
in mason city, iowa. it has been taken down cents per the iowa tea party state coordinator told the radio in iowa that everything obama has done has been in a lockstep with hitler. comments? >> no one really knows what that tea party is. the vast majority of folks who are part of the tea party movements are people who are fed up with government spending they see the ballot under president bush in 2008, health care, the automobiles, the stimulus and they are frustrated with the government role in american lives. however, as part of that moment, there are folks who don't think obama is legitimate. some of that is fueled by race. >> are they out of line when
they talk about racism? >> there are plenty of examples of these incidents the tea party leadership says it is a set up. they are real. there was no tea party movement when spending was out of control in the bush administration. there are those who suspect this is aimed at obama is legitimacy. i think it is so diverse and all over the place that you cannot just label it. they are equal opportunity haters. they need a reagan or a positive force to collect this energy. there will be a poster of charles crowdhamer and there is one nearby with obama and day hitler mustache.
there has been no channel of his energy into something people can like. >> there is nothing compared to the way bush was caricatured and attacked and treated. i think there is nothing to the charge that obama is being treated any worse than his predecessor, certainly no worse than george bush. this naacp is an organization in search of a purpose% this is a search for relevance. who would care about this if this had not happened? you have an african-american attorney general in charge of civil rights. civil rights was heroic in a
classic civil rights era. that is long over and needs a purpose. this was a publicity stunt. >> let me go back to unemployment. i want to talk about extending unemployment benefits forces extending the tax cuts. >> you have asymmetry there. alan greenspan this week approved the bush tax cuts said let them expire you could pay for the unemployment extension with a bat. unemployment money going out spurs demand that you have on certain the gone and buying power out there. the stimulus works better and you end up with more jobs. >> ne media consultant would say to fill in the black congressman voted for massive tax increases at a time of great unemployment
bamut trickle-down does not work. those tax cuts for reckless to begin with and are reckless now. they should be allowed to die. i suspect there'll be some compromise because everyone will be scared to let them die. >> unemployment benefits versus extending the taxes. >> it is an odd argument to make. essentially the government is subsidizing any activity. he will subsidize unemployment and will increase employment? i think not. should we do it on the basis of the being humane? i would say yes if you argue it is economically sound, that is observed. europe has had decades of experience of chronic 10% unemployment and a large segment
of the operation living on the dole. that is not what we want. these big non-financial companies are sitting on cash but they are not hiring people. >> they are not lending to small businesses. >> there is a capital strike happening in the country. in the absence of capital, you do not get expansion and increases in unemployment. this is not rocket science. >> have you looked at the percentages on seed's? >> 1% or less. >> the are putting their own money back into their own coffers. you cannot make them alone are higher. every time day at a factory
open, the lines around the block to get one job. >> it is a law of economics that you create wonderful the products and services, you create demand. asked apple. >> here is elizabeth warren. banking is based on trust and the basket our page 6 and hold our savings and know how we spend our money. we don't trust them, the whole system breaks down. wall street ceo's have thrown away trust. how can you get that back? >> regulation makes it so they cannot act like casinos and nothing happens. >> i trust the bank, i am not sentimental. i don't care who is in charge.
i might leave my money with them if they have money. >> i don't trust anybody. when you end up putting your money in cd's for less than 1% interest, you realize how little trust there are -- there is in the economy. >> we trust you. see you next week for a transcript of this broadcast, log onto inside